Is Karnika Industri overvalued or undervalued?

As of 28 August 2025, the valuation grade for Karnika Industri has moved from expensive to very expensive. The company is currently considered overvalued. Key ratios include a PE Ratio of 61.89, an EV to EBITDA of 44.41, and a Price to Book Value of 21.01, all of which indicate a significant premium compared to industry norms.
In comparison to peers, K P R Mill Ltd has a PE Ratio of 40.73, while Trident shows a more reasonable PE of 32.1, highlighting the relative overvaluation of Karnika. Additionally, the company's strong returns, with a year-to-date stock return of 138.97% versus a Sensex return of 3.62%, may not justify its current high valuation levels.